Businesses don’t want to pay. Hence, people don’t upskill themselves.
Real wages have been practically flat during this expansion. Wages rose 2.7% from a year earlier in June, below the 2.8% increase economists had expected. Over the last 30 years, executive and professional pay for the top 1% more than doubled. The bottom 90% of workers only got a 15% raise.
The typical worker received less than one half of one percent annual increase in real wages since the 1970s. And, no, increasing health care costs aren’t the reason. Heath and pensions are substitutes. Total labor compensation including health insurance has not kept up with labor productivity.
Yes, wages for the same job haven’t increased much. However, what if someone upskills to a higher paying type of job? Also, I think everyone knows the best way to get a raise is to change companies. That’s where 75% of my pay increase has been.
The labor force is 160M people. There are 6M open jobs, so even if all are filled by people that upskill it’s not a high enough percent of workers to significantly move the wage needle. Even if they all get a 20% raise, that only moves the needle 1% overall.
Fox News had an interview about it. It was being trashed by the local left leaning media who think increasing minimum wage equals higher standard of living. Meanwhile, Seattle rent has increased almost the exact same percent as minimum wage.
I don’t get the idiots that can’t see beyond the first order impact. They are either so dumb they should never discuss anything complicated, or they are purposely misleading people.
Then you have government who says taxing sinful behavior reduces it. It’s why there’s such a high tax on cigarettes and alcohol. They they tax and fee job creators to death and wonder why businesses close.
I’m sure that comforts the problem who’ve had theirs hours cut so their take him pay is lower. I doubt most service industry workers live in Seattle. They can’t afford the rents. They have to live outside the city and commute into it.
Those Dems need to come at it from the other direction. Restricting supply of low skilled illegals causes automation - which opens up fewer jobs but higher paying ones - for Americans.
Someone has to cater to all the liberal arts majors with massive student loan debt and minimum wage jobs. Then they can brag about how “educated” their voter base is.
An economics degree is only good enough to qualify as a barista or bartender. Unless you take it further in the financial industry. Economists are people that are smart but too risk adverse or lazy to actually make money.
